European chip market strengthens as UK waits to benefit

Europe’s semiconductor distribution market returned to the growth curve in the last quarter, but UK failed to see real benefit, according to DMASS, the European semiconductor manufacturer and distributor association.

Semiconductor distribution sales from January to March 2004 amounted to €1.2bn which was 25 per cent up on the previous three months and seven per cent better that this time last year.

The largest geographic market remains Germany which grew by 7.6 per cent to €368m.

The UK remains the third largest market behind Italy and Germany at €149m for the quarter, which was down five per cent on this time last year.

According to DMASS chairman Pierre-Yves Ferrard: “While the strength of the upturn still remains to be seen, the sequential growth of 25 per cent is far stronger than in the previous two years and is backed by relatively strong bookings. We continue to experience extended lead-times in several product segments.”

DMASS added that there was evidence that western European manufacturing markets have started to stabilise and grow again.

Analysed by region, the strongest growth happened in Israel, Iberia, Hungary and Czech Republic, with annual growth rates between 59 and 44 per cent.

The French market grew by 4.8 per cent to €122m.

Product breakdown indicated that memories, analogue ICs, LEDs and EEPROMS led the growth at over 20 per cent. The only major product type to decline was programmable logic which was 2.8 per cent down.